Several MPR members push for negotiations with IMF

Several MPR members push for negotiations with IMF

JAKARTA (JP): Several members of the People's Consultative
Assembly (MPR) toned down their criticism of the International
Monetary Fund (IMF) yesterday, saying that the country must
continue to talk with the organization to expedite a full
economic recovery.

Prominent assembly members called on the soon-to-be formed
cabinet to maintain a cooperative stance and conduct negotiations
with the IMF.

"Like it or not, the IMF is an international financial
institution with major funds and influence," the United
Development Party's (PPP) Hamzah Haz said.

"FPP (the United Development Faction) hopes that the new
cabinet will continue the talks with the IMF," said Hamzah, the
faction's vice chairman.

His statement was a radical departure from the fervently
jingoistic comments expressed by his peers the day before. They
charged that national dignity should be upheld rather than bowing
to international pressure.

Those comments came on the heels of President Soeharto's
suggestion that the "liberal" tendencies of the IMF reform
package was against the "familial style" prescribed by the 1945
Constitution.

Hamzah refused yesterday to pass judgment hastily.

Indonesia must respond to the IMF's decision with crystal
clear judgment and a cool head, he said. "A study must be done to
see which parts are liberal and which are not."

Golkar assembly member Fahmi Idris concurred but stressed that
some renegotiation was needed, adding that the new cabinet had to
immediately lobby and negotiate with the IMF so that the group
would allow several revisions of its program.

Fahmi maintained that some revision was necessary given some
of the program's contents could not be applied given the
country's present situation.

On Jan. 15 President Soeharto signed a 50-point letter of
intent with the IMF to conduct sweeping economic reforms.

Among issues that many people here have raised concern over is
the requirement that the government halt subsidies on certain
primary goods such as fuel.

Soeharto's remarks came on the heels of the IMF's decision to
delay the second disbursement of its aid package.

Fahmi said a cessation of fuel subsidies, due to come in at
the beginning of next month, would be extremely rough on the
people.

"We are optimistic that the IMF will be willing to negotiate
and give an objective consideration that some of the points in
the letter of intent are not applicable here," Fahmi said.

"This could help prevent a negative impression of us breaking
an international agreement," he argued.

Golkar economist and assembly member Gunawan Sumodiningrat
said the reform package was generally acceptable but that there
was a disparity in the perception if its implementation.

Gunawan said the Indonesian economy was a market economy which
still adhered to the principles of cooperatives and family-run
businesses.

In this kind of economy, he explained, the government cannot
just lift subsidies on certain goods which affect a great deal of
people.

PPP chairman Ismail Hasan Metareum remained firm in his
rhetoric, arguing that Indonesia must not "beg" before the IMF to
get the funds.

"It is up to them, if they want to give it to us that's good,
but we will not be pressured by anyone, especially by foreign
nations," he said.

"If we could do it back in '65, why can't we now?" asked
Ismail, referring to then President Sukarno's decision to discard
foreign aid altogether.

But Ismail also had strong words for the government who's
faulty past economic strategies had led to frail economic
fundamentals.

"When we formed our strategy, we focused too much on helping a
minority instead of the majority with the ultimate aim of
speeding up economic growth," he said.

Ismail also said that 30 years of development had been
destroyed within a mere six months. (das)